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Smart tax saving investments

You can save tax by investing in instruments that qualify for tax deductions


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Here are seven tax saving investments available to an individual:

InvestmentInterest or ReturnInvestment Amount (Rs)Eligible DeductionFeatureAssured Income
Public Provident Fund (PPF)7.60%Min: 500 Max: 1.5 lakhUnder 80C, up to Rs 1.5 lakhPrincipal and interest are tax freeYes
National Savings Certificate (NSC)5-year: 7.60%Min: 100 Max: No LimitUnder 80C, up to Rs 1.5 lakhInterest is taxableYes
Equity Linked Savings Scloeme (ELSS)No fixed returnsMin: 500 Max: No LimitUnder 80C, up to Rs 1.5 lakhReturns in excess of Rs 1 lakh are taxable at 10%No
Life insurance premium or ULIPsNo assured returnsDepends on the planUnder 80C, up to Rs 1.5 lakhMaturity proceeds are tax-freeNo
National Pension System (NPS)No assured returnsMin: 1000 Max: No LimitUnder 80C, up to Rs 1.5 lakh; Under 80CCD(1B), Rs 50,00040% of the corpus on maturity is tax-freeNo
EPF8.55%Upto 12% on basic salary by employee and employerUnder 80C, up to Rs 1.5 lakhTax free on maturity.Yes
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